Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
NJ Legislature Considering Another Non-Residential Development Fee Moratorium
Author: Scarinci Hollenbeck, LLC
Date: June 18, 2014
Key Contacts
Back
The New Jersey Legislature is currently considering a bill that would suspend the imposition of development fees on non-residential construction projects. Like previous moratoriums, the goal is to encourage the development of commercial projects throughout New Jersey.
Pursuant to the Statewide Non-residential Development Fee Act, the amount of the development fee is equal to 2.5 percent of a project’s equalized assessed value including land and improvements. The fee must be paid by the commercial project developer prior to the issuance of a certificate of occupancy.
The law has been suspended several times since it was first passed in 2008. A previous moratorium suspended the collection of such fees until July 1, 2013. However, it lapsed when Gov. Chris Christie conditionally vetoed a bill last year that also included the “New Jersey Residential Foreclosure Transformation Act.”
The Latest Moratorium Proposal
Under the latest proposal (A-2542), the moratorium would be extended through December 31, 2015. The bill also provides that:
- Municipalities are required to return any monies paid during the time period commencing on July 1, 2013 through the effective date of the bill due to the previous expiration of the moratorium.
- If monies are eligible to be returned under the bill, a developer shall file a claim within 120 days of the bill’s effective date and the municipality must promptly review the claim and return the fee to the developer within 30 days of the claim.
- Municipalities that are eligible to collect non-residential development fees would not be required to refund monies that have already been expended by the municipality on affordable housing projects.
Earlier this month, the bill was released by the Assembly Budget Committee. A companion bill is pending in the Senate. We will continue to track the status of this legislation and provide updates as they become available.
If you have any questions about this post or would like to discuss your company’s development projects, please contact me, Victor Kinon, or the Scarinci Hollenbeck attorney with whom you work.
- Industries: Real Estate
- Practices: Commercial Real Estate, Commercial Leasing
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Author: Sean M. Pena
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Author: John D. Giampolo
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Author: George McGowan
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
Author: Marc J. Comer
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
Author: George McGowan
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Author: Sean M. Pena
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.